Business

Break-Even Calculator

Find the sales volume where total revenue equals total costs.

Calculator

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Break-even units

500

Break-even revenue

$25,000

Contribution margin

$20

What is break-even?

The break-even point is where total revenue equals total costs — no profit, no loss. Knowing it helps you price products and set sales targets.

Example

With $10,000 monthly fixed costs, $50 price per unit, and $30 variable cost per unit, the break-even point is 500 units per month.

Money-saving tips

  • Lower fixed costs to reduce your break-even point.
  • Raise prices or cut variable costs to improve margins.
  • Use break-even analysis before launching a new product.

Common mistakes

  • Forgetting to include all fixed costs like insurance and software.

Financial definitions

Fixed costs
Costs that do not change with production volume.
Variable costs
Costs that increase with each unit produced.

Frequently asked questions

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Estimated reading time: 5 min